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Pursuing Prosecution of the Former Deputy Minister of Industry and Trade

8 January, 2025

Vietnam’s Ministry of Public Security’s Investigation Security Agency has released supplementary conclusions regarding a case of “Abuse of position and power in the performance of official duties; Negligence causing serious consequences” involving the Ministry of Industry and Trade and various provinces related to the Trung Nam Thuan Nam Solar Power Plant. This is the third supplementary conclusion issued by the Investigation Security Agency after the Supreme People’s Procuracy returned the case file twice.

Acting contrary to regulations

In this case, the Investigation Security Agency proposed the prosecution of eight defendants, including Hoang Quoc Vuong, former Chairman of the Vietnam Electricity Group (EVN) and former Deputy Minister of Industry and Trade, and Phuong Hoang Kim, former Director of the Department of Electricity and Renewable Energy (Ministry of Industry and Trade), for “Abuse of position and power in the performance of official duties.” The agency also proposed the prosecution of three defendants for “Negligence causing serious consequences.”

According to the case file, in 2018, the Vietnamese government issued Resolution 115 on special mechanisms and policies to support Ninh Thuan province. This document included a provision allowing solar power projects in the province to enjoy a preferential price of 9.35 US cents/kWh until the end of 2020, instead of only until June 2019 as stipulated in the Prime Minister’s Decision 11.

In August 2018, the Ministry of Industry and Trade established a drafting team for the Prime Minister’s decisions on mechanisms to encourage the development of solar power projects in Vietnam (draft Decision 13/2020/QD-TTg), comprising 26 members. Phuong Hoang Kim was appointed as the team leader.

The drafting team included the following content in the draft: “For Ninh Thuan province, the price of electricity sold from solar power projects connected to the grid with a commercial operation date before January 1, 2021, with a total capacity of no more than 2,000 MW approved by the Prime Minister is 2,086 VND/kWh (equivalent to 9.35 US cents/kWh)…”

In April 2019, Deputy Minister Hoang Quoc Vuong chaired a meeting on the development of the draft content and directed a change in the above content to apply to: “Solar power projects connected to the grid that are included in the power development planning of various levels.” This change would expand the number of units eligible to sell electricity at a higher price to EVN.

Despite the Prime Minister’s subsequent request to “strictly implement” Resolution 115, defendant Hoang Quoc Vuong still submitted a draft report with the following content: “For Ninh Thuan province, the price of electricity purchased from solar power projects connected to the grid that are included in the power development planning of various levels and have a commercial operation date before January 1, 2021, with a total cumulative capacity of no more than 2,000 MW is 2,086 VND/kWh.”

After Decision 13 was issued, a total of 30 projects in Ninh Thuan province benefited from the policy of a preferential electricity price of 9.35 US cents/kWh. Among them, two solar power plants, Solar Farm Nhon Hai and Trung Nam Thuan Nam, did not meet the conditions to enjoy the preferential electricity price according to Resolution 115.

Defendant Hoang Quoc Vuong when he was in office. Photo: VPG

Causing damages of more than VND 1,000 billion

The supplementary conclusion of the investigation clearly states that since the Solar Farm Nhon Hai solar power project was put into commercial operation on July 6, 2020, until June 30, 2024, EVN has made payments for electricity purchases at the rate of 9.35 US cents/kWh, totaling more than VND 412 billion. The difference in price compared to the rate of 7.09 US cents/kWh amounts to more than VND 99 billion.

From the commercial operation date of October 1, 2020, to September 30, 023, for the Trung Nam Thuan Nam solar power project, EVN made payments for electricity purchases at the rate of 9.35 US cents/kWh for a capacity of 227.88 MW, totaling more than VND 3,905 billion. The difference in price compared to the rate of 9.09 US cents/kWh amounts to more than VND 944 billion. The Investigation Security Agency determined that the actions of the defendants caused damages to EVN totaling more than VND 1,043 billion.

In the supplementary conclusion, the Investigation Security Agency stated that the former Minister of Industry and Trade, Tran Tuan Anh, signed six reports and submissions from the Ministry of Industry and Trade to the Prime Minister, proposing the issuance of Decision 13. This decision contradicted Resolution 115 of the Government issued earlier.

When signing these reports and submissions, Mr. Tran Tuan Anh was unaware of Hoang Quoc Vuong’s directive to adjust and expand the scope contrary to Resolution 115 of the Government. Additionally, the investigation did not find any documents or evidence indicating that the former minister had any personal gain motive, so the Investigation Security Agency “did not consider handling Mr. Tran Tuan Anh criminally.”

Regarding the former Deputy Prime Minister, Trinh Dinh Dung, the Investigation Security Agency concluded that Mr. Dung was responsible for drafting and signing the issuance of Decision 13. However, as he trusted the results of the drafting, appraisal, and verification processes conducted by the Ministry of Industry and Trade, the Ministry of Justice, and the Government Office, Mr. Dung was unaware that Clause 3, Article 5 of Decision 13 contradicted Resolution 115. Moreover, the investigation did not find any documents or evidence indicating that Mr. Dung received money or other material benefits to create undue advantages for businesses. Therefore, Mr. Trinh Dinh Dung was not subject to criminal proceedings.

Some individuals have degenerated and become corrupt

The Investigation Security Agency of the Ministry of Public Security attributed the crime to the degeneration and corruption of some individuals during the performance of their duties. In some cases, personal gain or other motives led to violations of regulations, creating undue advantages for businesses. Additionally, legal provisions in certain areas were not comprehensive enough and did not clearly distinguish the roles and responsibilities of each unit at different stages, allowing individuals to exploit their positions and powers to act contrary to their duties, causing harm to the state and organizations.

NGUYEN HUONG

– 07:00 02/01/2025